Orsha Linen Mill, Italy’s Marzotto Group might set up joint venture

MINSK, 9 September (BelTA) – Orsha Linen Mill is in talks with Marzotto Group from Italy to establish a joint venture, Director General of the Belarusian company Vladimir Nesterenko told a press conference on 9 September, BelTA has learnt. “It is a lengthy process because of the large amount of investment and our company’s increasing expenses,” Vladimir Nesterenko said. The technical upgrade of the company will add up to its investment appeal. The upgrade is expected to increase labor productivity, competitiveness of products and wages of the company’s employees. The Director General of the company informed that Orsha Linen Mill has embarked on talks with Chinese producers. A delegation of Chinese business circles visited the company in August. “Chinese are cautious investors, they are unlikely to make a decision soon,” the Director General said. Vladimir Nesterenko added that in 2010-2014, Br456 billion will be invested in the development of the company, Br53 billion was utilized in 2009. The money will be spent on the upgrade of three factories of the linen mill. The processing of flax fiber will be increased twice and the production of fabric 2.5 times compared with today’s volume. At present, the company exports about 60% of its make; after the technical upgrade project is completed, the company will be able to export up to 80% of its products. “Such ambitious plans are, of course, associated with certain risks,” he said. The Director General explained that Orsha Linen Mill faces tough competition on the part of Asian producers. Besides, human resources is also a topical issue in the small town of Orsha. Orsha Linen Mill is Belarus’ only manufacturer and supplier of linen fabric and other flax products. The company comprises five factories, while the flax manufacturing process includes around 100 technological operations.

БЕЛТА